China’s ban forces some bitcoin miners to flee overseas, others sell out

China’s sweeping ban on cryptocurrency mining has paralysed an industry that accounts for over half of global bitcoin production, as miners dump machines in despair or seek refuge in places such as Texas or Kazakhstan.

“Many miners are exiting the business to comply with government policies,” said Mike Huang, operator of a cryptomining farm in the southwest province of Sichuan.

“Mining machines are selling like scrap metal.”

The local government of Sichuan, China’s No.2 bitcoin mining centre after Xinjiang, issued a ban on cryptomining a week ago.

China’s State Council, or cabinet, vowed to crack down on bitcoin trading and mining in late May, seeking to fend off financial risks after the global bitcoin mania revived Chinese speculative trading in cryptocurrencies.